Pawn shop with blockchain and cryptocurrency: how the KVP Group plans to reform the industry

Dmitry Plushchevsky, one of the founders of the KVP Group pawnshops network, presented the first robotic pawnshop on the blockchain. The development was named Custody bot, it is designed to reform the archaic segment, which has long been in stagnation.

Custody bot is a device similar to a large refrigerator with a touch screen. The client puts the product from the precious metal in a special section, and then the device evaluates the thing: the weight of the product and the sample of the metal from which it is made are displayed on the screen. Immediately offered the purchase price. If a person is satisfied with the amount, money is instantly credited to his/her card, and the product remains stored inside the device. After the client repays the loan with interest, he/she will be able to pick up the item left in pledge by providing the previously received code to the custody bot.

Plushchevsky believes that the development of KVP Group will significantly reduce the costs of this business. The device will work without unnecessary more appraisers, and renting large premises will no longer be needed. Having created its own robot, KVP Group bought out the network of pawnshops “Mosgorlombard”, which is the oldest in the region. Dmitry and his partners hope to turn the unprofitable business into a highly profitable enterprise.

“We wanted to change this area the way Uber and Gett did with the taxi market” – says Plushchevsky.

The technology company, which is a part of the KVP Group holding, Goldmint, is responsible for the appraiser. Custody bot can issue money for products and store them and it is also connected to the blockchain, which records all loans issued by Mosgorlombard. The company launched a cryptocurrency associated with a pawnshop, investing money in tokens of which people become co-investors of the network. According to Dmitry, the holding turned to the technology of the distributed registry not because of the global hyip. The entrepreneur believes that the technology allows to increase the credibility of the entire system by investors. In addition, the blockchain solves one of the problems of such a business – the opacity of operations. Now business will be able to get access to large finances, will be able to attract investors.

At times reducing the costs of workers and rental of premises, the network of pawnshops managed to reduce the interest rate, making such a loan equal to the price of a bank. Not only Russian, but also foreign enterprises have already become interested in the Custody bot. According to RBC, the KVP Group will sell the device to other pawnshops at a price of 15 thousand euros per copy.